Q.E.P. Company completes sale of manufacturing facility in Tennessee

Q.E.P. announced that on September 29, 2023, it completed the sale of its manufacturing facility in Johnson City, Tennessee to Hatley Properties, in a transaction valued at $5.3 million. The facility consists of approximately 295,000 square feet of manufacturing and warehouse space on approximately 48 acres in Johnson City, Tennessee. As part of the terms of this transaction, Hatley Properties has agreed to allow QEP to remain at the facility through November 2023 in order for QEP to complete an orderly exit including the relocation of its grouting sponge production operations to its manufacturing facility in Dalton, Georgia. Commenting on the transaction, Len Gould, President & CEO, The Americas, of QEP stated, “This transaction completes QEP’s exit from wood flooring manufacturing. The divestiture of these assets is another step in QEP’s ongoing strategic plan to add scale to growing its core brands of flooring-related tools, adhesives, underlayment and accessory products. Additionally, it is important to recognize the incredible efforts of so many cross-functional employees during this transitional period. Our people are truly the strength of QEP.” In connection with this transaction, the Company has entered into Amendment No. 5 to the Fifth Amended and Restated Loan and Security Agreement, Waiver, Consent and Release dated February 15, 2021 with its lending institution, Bank of America, N.A.